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Discussion

Preparation for Commerce - Accounting
(57)

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A, B and C are equal partners. D is admitted to the firm for one-fourth share. D brings Rs. 20,000 capital and Rs. 5,000 being half of the premium for goodwill. The value of goodwill of the firm is

 
Rs. 10,000
Rs. 40,000
Rs. 20,000
None of these

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Debajit Borboruah

It should be D instead of B in the explanation.